HM Revenue and Customs (HMRC) is in the process of issuing automatic £200 tax charges for state pensioners under the age of 80 to claw back Winter Fuel Payments.

The government department is currently reclaiming Winter Fuel Payments from pensioner households with an annual income of £35,000 or more that received a payment in winter 2025. Almost two million people are expected to repay these payments, which are worth between £100 and £300, because their annual income is above the threshold, and for most, HMRC will recover the payments automatically. According to the tax office, the typical Winter Fuel Payment is £200 for pensioners aged under 80 who live alone.

So if your annual income exceeds £35,000, the Winter Fuel Payment will be taken back in full by HMRC, and for those under 80 who received £200 in winter 2025, the repayments will be clawed back through extra tax charges of approximately £17 per month in 2026/27 until the payment is recovered.

HMRC said: “For a typical Winter Fuel Payment of £200, PAYE customers with income more than £35,000 will pay approximately £17 per month extra in tax during the 2026 to 2027 tax year to recover their payment.”

HMRC has confirmed that payments will be taken back through a change in pensioners’ PAYE tax code from April 2026. For pensioners in Self Assessment who file online, the payment should instead be pre-populated in their 2025 to 2026 tax return, due by January 31, 2027.

Pensioners should check the payment is there and in cases where it’s not shown, it should be added manually. Those who file paper returns will need to add it to their tax return by October 31, 2026.

Explaining how the tax code change will work for basic rate taxpayers, HMRC said: “Your total income is £37,710. This is made up of £25,737 from a private pension and £11,973 from your State Pension. In December, you got a £200 Winter Fuel Payment. Your Personal Allowance is £12,570. We’ll reduce your tax free amount by:

• £11,973 (your State Pension)
• 1,000 (1,000 × 20% = the £200 Winter Fuel Payment you need to repay)

“This is your total deductions. £12,570 (Personal Allowance) – £12,973 (total deductions) = –£403 of tax free allowance. Your new tax code is K39. This means you’ll pay extra tax on £399 of income. You’ll pay around £17 more tax per month.”

The automatic recovery of Winter Fuel Payments for those with an annual income exceeding £35,000 applies across the whole of the UK, including in Scotland where the payment is known as the Pension Age Winter Heating Payment and in Northern Ireland where payments were made by the Department for Work and Pensions (DWP) on behalf of the Northern Ireland Executive. In all cases, recovery is handled by HMRC.

The payment recovery only applies to pensioners who exceed the income threshold and didn’t opt out of getting the Winter Fuel Payment last year.

HMRC warned pensioners to be wary of scams as the recovery of Winter Fuel Payments is now underway and advised people to report any suspicious texts or emails.

The government department said: “To report a suspicious text claiming to be from HMRC, forward it to 60599. To report a suspicious email, forward it to phishing@hmrc.gov.uk. To report a scam phone call, visit GOV.UK.

“If you have had money stolen, contact your bank immediately and notify Report Fraud. In Scotland, contact police on 101.”